Tanzania is to lose ‘$470m’ from aid cut after US aid agency, the Millenium Challenge Corporation (MCC), revealed it would back out from the new aid agreement, which was due to be signed this year.
MCC said the deal would have offered $470m to the ‘power sector, including investments in infrastructure and also aid in the policy, regulatory and institutional reforms of Tanzanian government website states.
A former five-year deal which was endorsed in 2008 made $700m available to the country in financial support to improve energy, water and transport infrastructure.
Tanzania’s President John Magufuli is likely going to have some issues following this cancellation. The president has been widely praised for his efforts to tackle corruption since coming to power last November.
The agency gives huge money to countries that show attempt of good leadership and other pro-democracy measures as long as those countriues are in US government grants
The agency revealed it cuts ties with Tanzania, slamming the government’s handling of elections in the semi-autonomous archipelago of Zanzibar.
The statement shows that MCC’s cancellation of its partnership with Tanzania was for the country’s defiance in carrying out Zanzibar election on March 20, 2016.
In the country’s March election, a semi-autonomous archipelago of Zanzibar held a re-run of the islands’ presidential election, which the opposition boycotted.
It was reported that Tanzania moved forward with a new election in Zanzibar which was neither inclusive nor representative, but was published even though US government and the international community showed repeated concern over the election.
Elections held in October were declared invalid after the opposition stated their own results. This was after electoral commission noted that there were irregularities during the elections. However, the opposition insisted that its candidate was the winner of the October’s poll.
Secondly, the US agency revealed the government’s failure to ensure that the Cybercrimes Act newly passed ‘would not be used to stifle free expression and association, making reference to the arrests made during the elections.
Tanzania’s authority has expressed its disappointment by US’ decision to withdraw electricity aid.
According to Tanzania’s Minister of Foreign Affairs Augustine Mahiga, the country is shocked that the MCC did not regard the remarkable democratic strides that Tanzania continues to make.
Angry at the cancellation, Mr Mahiga added that MCC ought to have consulted the government before taking such decision.